Bill > HB0385

This bill modifies Utah's stop-loss insurance regulations, which are a type of insurance that protects small employers from excessive health insurance claims. The key changes include raising the annual specific attachment point (the threshold at which stop-loss insurance begins to cover claims) from $10,000 to $30,000, increasing the minimum aggregate attachment point from 85% to 90% of expected claims, and establishing new restrictions on stop-loss insurance contracts. The bill now limits stop-loss insurance contracts to small employers with 15 or more enrolled employees, prohibits "lasering" (selectively applying higher rates to certain employees), and prevents stop-loss insurers from paying claims directly to individual employees. Additionally, the bill provides a transition period, allowing existing stop-loss insurance contracts to comply with the new requirements by July 1, 2027. The provisions aim to create more standardized and protective stop-loss insurance practices for small employers, with the changes taking effect on July 1, 2025.

Business and Industry

https://le.utah.gov/~2025/bills/static/HB0385.html